Use of perceptual map as a step in positioning and building VP.

Perceptual map or positioning map is a visual tool to depict the place of different products based on 2 attributes important to consumers. The map shows how the customers perceive each brand in terms of the 2 attributes on the horizontal and vertical axis. At the same time, the map can should what will be the ideal location from the customer’s point of view for a product. Once a perceptual map is completed, it will also illustrate possible locations (attributes) that the product can enter the market.
Using the perceptual map, one can easily identify the POP (Points of Parity) and POD (Point of Difference) of products compare to each other. Then POP and POD can be used to create the value proposition. The POP will be used to show user that our product can deliver what other products in the market can deliver and POD will show what our product which others can’t (or have poor performance in that area)
For example in cordless phone market a perceptual map can look like this:

Figure 1

Figure 2

As it can be seen from figure 1, B&O which is a high-end product has the highest rating from user perception on audio quality and industrial design (FYI a base and a handset unit can cost as high as $7000 USD). But in figure 2, this brand loses the size and life time of the battery to other brands. So for a value proposition for this brand, efforts should be focused on audio quality and design. On the other hand for VTech and Undien audio quality and battery life are POPs as both brands deliver similar battery life hours and audio quality, but a POD for VTech will be smaller handset design, where as a POD for Uniden can be better industrial design.
How would you develope a value proposition for brand of your choice? What are some common mistakes?
By Reza Yazdi – Jun 9, 2010

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